SECTORS ALERT – 07.07.2014

SECTORS ALERT – 07.07.2014

* AUTO: Honda Cars India is planning to start a second shift at its Tapukara
plant post launch of its Mobilio utility vehicle. Nissan plans to set up dealers in
the right place in its bid to correct a flawed marketing campaign, Chief Planning
Officer Andy Palmer said. The government intends to provide subsidy worth 136
bln rupees for electric and hybrid vehicles under the National Electric Mobility
Mission Plan.

* AVIATION: The Ministry of Civil Aviation, in consultation with its tourism
counterpart, is likely to add to the list of 50 locations identified for development
of low-cost airports to improve connectivity to remote areas.

* BANKING: International Finance Corp, an arm of the World Bank, will infuse
1.6 bln rupees into Bandhan Financial Services Pvt Ltd. Thailand-based Sura
Chansrichawla, who holds 10% stake in Catholic Syrian Bank, has sold nearly 5%
to Abu Dhabi-based non-resident Indian businessman M. A. Yusuf Ali and around
3% to another NRI.

* BUDGET: Finance Minister Arun Jaitley is likely to restructure import duties on
a host of raw materials and intermediates in a bid to boost domestic
manufacturing.

* CONSTRUCTION: The National Highways Authority of India has proposed
creation of an entity on the lines of an asset reconstruction company to bail out
distressed lenders and developers.

* ECONOMY: A new panel has found that 29.5% of India's population was poor
in 2011-12 against just 21.9% estimated under the previous methodology.
According to the International Monetary Fund, India's inflation is expected to
ease to 8% in 2014.

* ENERGY: External Affairs Minister Sushma Swaraj has asked the oil ministry to
prepare a list of areas and countries where her ministry can pitch in to contribute
towards India's energy security. Oil Minister Dharmendra Pradhan has said prices
of gas produced from different sources cannot be the same and the government
will strike a balance between the consumer and producer when announcing new
rates.Pradhan said domestically-produced gas cannot be priced using any global
benchmark. The government is considering a cut in excise duty on diesel.

* FMCG: Union Health Minister Harsh Vardhan has urged states and Union
Territories to impose value added tax of at least 50% on tobacco products.

* GOLD: The government may look at a reduction in import duty on gold from
the current 10% in the final budget for 2014-15.

* GOVERNMENT: The government will seek to raise up to $11.7 bln in asset
sales in its maiden Budget on Thursday.

* INFLATION: Finance Minister Arun Jaitley said on Friday there is no need to
panic on the inflation front as there is a seasonal price rise in some commodities
during July. The government is planning to amend the Essential Commodities Act
to give it more teeth and make hoarding a non-bailable offence as part of its
strategy to rein in prices. The government will soon consider a proposal to
increase per capita food grain allocation to 7 kg per month from 5 kg given
under the National Food Security Act.

* MARKETS: The BSE will change circuit filters of 541 stocks from Monday, the
exchange said in a circular today.

* POLITICS: Prime Minister Narendra Modi will take a final call on elevation of
Bharatiya Janata Party's general secretary Amit Shah as its national president.
Ahead of the budget session of Parliament, Congress leaders have indicated that
the party could seek a structured discussion on inflation and the Mahatma
Gandhi National Rural Employment Guarantee Act.
- An official report exposing possible financial irregularities in the
national rural employment scheme could be raised by the BJP against the
Congress-led Maharashtra government in the upcoming assembly elections.

* POWER: The Narendra Modi-led government has decided to go ahead with
setting up an ultra mega power project in Chhattisgarh, which was cancelled by
the outgoing government.

* REGULATORY: The government may soon lay out a road map for the creation
of the Unified Financial Agency. The Securities and Exchange Board of India has
issued over 700 attachment orders to defaulters for recovery of around 16 bln
rupees.- The Reserve Bank of India has told the Andhra Pradesh and Telangana
governments that they would have to reimburse banks in cash if they wish to
waive loans for any segment.

* RETAIL: Aditya Birla Retail has borrowed 5 bln rupees from YES BANK as it
plans to ramp up its food and grocery business.

* ROADS: The Centre will not extend any assistance under national highways
programme if the Kerala government develops national highway stretches in the
state at 30-mtr width instead of 45 mtr.

* SHIPPING: India plans to extend benefits of coastal shipping to vessels plying
between India and Bangladesh from October.

* TAXATION: The proposed Goods and Services Tax may be introduced only
from 2016-17 (Apr-Mar). The finance ministry has ordered the creation of an
intelligence unit and the appointment of 800 personnel to check any leakage in
earnings from indirect taxes. The final hurdle to introducing a general sales tax
regime in the upcoming Budget was cleared in June, with the law ministry
approving an agreement to transfer dealers' database from the government's
Central Board of Excise Duty and Customs to private entity GST Network.

* TELECOM: The telecom department is considering auctioning a band of third
generation spectrum this financial year.

* WEATHER: The southwest monsoon continued to be weak with the country
receiving 5.6 mm of rainfall, around 34% below the normal weighted average of
8.5 mm for Friday.

SECTORS ALERT – 04.07.2014

SECTORS ALERT – 04.07.2014

* AGRICULTURE: The India Meteorological Department has forecast
improvement in rains after Sunday, Agriculture Minister Radha Mohan Singh said.

* AUTOMOTIVE: The government has constituted a panel to develop fuel
economy norms for heavy-duty vehicles. Nissan plans to introduce a hatchback
priced below the Alto.

* AVIATION: Air India has invited bids from banks to arrange financing of up to
$44 mln for taking delivery of two GEnx spare engines. Indian air traffic grew by
4% in May, even as the overall global air traffic rose by 6.2%.

- AirAsia India will accelerate its fleet induction plans on high passenger
demand. Its founders will pump excess of $200 mln into the airline every year.

* FOREIGN TRADE: India has told the World Trade Organisation it will not ratify
trade facilitation agreement because there has been no progress on finding a
permanent solution to the sticky issue of food subsidy caps.

* GOVERNMENT: The Narendra Modi-led government is reviewing the outgoing
government's decision to have a uniform gas price, as the cost of production of
new fields is much higher than old ones and coal-bed methane.
- The government may take the middle path to resolve its long-pending
tax dispute with Vodafone by waiving off interest by amending the law. The
government is likely to introduce four education bills during the budget session.
To curb diversion of domestic liquefied petroleum gas, the government is
planning to transfer subsidy amounts directly to the consumer's bank account,
but without the use of Aadhar.
- The government is planning to allow consumers in the power, steel and
cement sectors to swap fuel linkages between associated companies and special
purpose vehicles.

* MEDIA: Private FM radio channels will soon be allowed to air news.

* MONSOON: The India Meteorological Department has said that India's rainfallon Jul 3 was 4.4 mm, 48% below normal.

* NATIONAL SECURITY: Ahead of Prime Minister Narendra Modi's visit to Jammu
and Kashmir, the Army foiled a second infiltration bid in less than 24 hours along
the Line of Control in Poonch district on Thursday.

* PHARMACEUTICALS: The government has decided to bring four new vaccines
under Universal Immunisation Programme.

* REGULATORY: The tax department has told the Supreme Court it seeks 70 bln
rupees from Sahara as tax deducted at source on 257 bln rupees collected by the
company through debentures between 2008-11. RBI has restored the limit of
overseas direct investment under the automatic route to 400% of a company's
net worth.
* REAL ESTATE: Urban Development Minister M. Venkaiah Naidu has said the
government would open an escrow account to fund affordable housing in the
country.

* ROADS: The Committee on Public Undertakings, Parliament's watchdog, has
asked the Ministry of Road Transport and Highways to place the National
Highways Authority of India under its purview.

- The government will initiate measures to turn around the highways sector in
two years by garnering funds to the tune of 1 trln rupees in a year, Road
Transport Minister Nitin Gadkari said.

* TAXATION: The Centre and states moved closer to evolving a consensus on
rolling out the Goods and Services Tax in the country with both sides narrowing
their differences.

* TELECOMMUNICATIONS: A Department of Telecommunications panel has
given its report on segregation of revenues earned by telecom operators from
use of broadband wireless access spectrum meant for high-speed data services.

SECTORS ALERT – 03.07.2014

SECTORS ALERT – 03.07.2014

* AGRICULTURE: Earth Sciences Minister Jitendra Singh said there is no need to
"panic" because of below-normal rains so far this monsoon season.

* AUTOMOBILES: Prime Minister Narendra Modi wants Ford Motor Co to put
Sanand and India on the global manufacturing map by exporting cars in large
numbers from the facility. French carmaker Renault has hiked prices of its vehicles in India
by 1% from Jul 1.

* AVIATION: IndiGo is planning to launch an initial public offering to raise $250
mln-$300 mln.

* CEMENT: Real estate developers plan to move the Competition Commission of
India against alleged cartelisation by cement producers.

* DEFENCE: India is likely to opt for a calibrated opening up of defence
production to foreign direct investment.

* EDUCATION: Private equity fund New Silk Route has put its 25% stake in
south India's Sri Chaitanya Educational Group on the block.

* ENERGY: The government has decided to defer any possible hikes in prices of
cooking gas and kerosene in some states where the oil marketing companies
incur additional levies, which were being recovered from consumers.

* GOVERNMENT: The Maharashtra government will ask for an additional 22,000
tn of foodgrain from the Central government in order to provide 35 kg of
foodgrain per ration card. The Cabinet Committee on Economic Affairs has
approved continuation of a scheme to modernise and strengthen intellectual
property offices, the cost of which is likely to be 3.10 bln rupees. To curb
hoarding of vegetables, the Cabinet Committee on Economic Affairs has
approved the inclusion of onion and potato in the purview of stock holding limits
under the Essential Commodities Act, 1955, for one year. Uttar Pradesh has lost
more than 5 bln rupees of potential revenue because of the state's soft policy
towards liquor retailers, the Comptrollerand Auditor General has said in a report. The Centre plans to review the law governing contract labour.

* INFRASTRUCTURE: Singapore has offered to partner India in developing smart
cities in the country. The National Highways Authority of India is planning to
make contract rules for road projects more flexible by tweaking the Model
Concession Agreement. The roads ministry has sought greater powers to be
given to National Highways Authority of India to revive the sector.

* MINING: International Coal Ventures, the joint venture between COAL INDIA,
STEEL AUTHORITY OF INDIA, NMDC, and Rashtriya Ispat Nigam, is close to
placing a bid for acquiring 100% stake in a major coking coal property in
Mozambique.

* REGULATORY: The Department of Industrial Promotion has raised the initial
validity period of grant of industrial licence to 3 years.

* TEXTILES: The textiles ministry is likely to seek up to 10.50 bln rupees from
the finance ministry to develop 15 mega handloom clusters across India.

SECTORS ALERT – 01.07.2014

SECTORS ALERT – 01.07.2014
* AUTOMOTIVE: Japan's Yamaha is working on a project to develop a small bike
for India, which it aims to sell for around 30,000 rupees.
* AVIATION: Air India continues to maintain international offices, with a fifth of
these at destinations where it has no direct operations.
* CONGLOMERATE: Emami Group is set to acquire Shrachi group's 32% stake in
hospital chain AMRI Hospitals.
* DEFENCE: French Foreign Minister Laurent Fabius pushed for a $12-bln deal to
sell Rafale combat aircraft to India in his meetings with his Indian counterpart
Sushma Swaraj and Defence Minister Arun Jaitley on Monday.
* GOLD: The Central Board of Excise and Customs has raised the base import
price of gold by $17 to $428 per 10 gm from $411 fixed on Jun 13.
* GOVERNMENT: Delhi government will add 415,422 persons under the purview
of the National Food Security Act in the capital. India and China have signed a
memorandum of understanding on the creation of industrial parks, with the
government agreeing to grant them the same status in line with the Special
Economic Zones and National Investment and Management Zones.
* OIL AND GAS: Niko Resources and partners in the KG-D6 block, RELIANCE
INDUSTRIES and British Petroleum, will collectively defer investment plans in
the asset on account of indecision on gas price revision.
* POWER: The coal ministry has rejected the power ministry's plea to allow
medium-and short-term electricity purchase agreements to secure fuel linkages.
* REGULATORY: RBI will not issue instructions relating to deduction of tax at
source when allowing remittances to non-residents. Indian financial institutions
and their branches have time until Dec 31 to register with US authorities and
obtain a Global Intermediary Identification Number. Merrill Lynch International
has settled a case related to takeover norm violation with the SEBI, by paying a
penalty of 4.03 mln rupees. Forward Markets Commission has directed
exchanges to expel members who have been expelled by any commodityexchange with immediate effect.
* ROADS: Bombay High Court has granted interim relief to 44 toll booth
contractors in Maharashtra by granting a stay on their demolition.
* TAXATION: The government's tax collections during Apr-May rose 8.7% on
year to 845.16 bln rupees.
* TELECOM: The Department of Telecommunications has reiterated that there
was no wrongdoing in allowing RELIANCE INDUSTRIES' Reliance Jio to convert
its internet service provider permit into a unified licence, or in the auction of
broadband wireless spectrum

SECTORS ALERT – 30.06.2014

SECTORS ALERT – 30.06.2014

* AUTOMOBILES: Hyundai Motor has announced benefits of up to 30,000 rupees
per car for government and public sector undertakings' employees. German
major Volkswagen is lining up a slew of budget cars to take on Indian market
leaders MARUTI SUZUKI INDIA and Hyundai Motors. India has made anti-lock
breaking system mandatory on all new models of commercial vehicles, with
effect from April.

* BANKING: State Bank of India Chairman Arundhati Bhattacharya has come out
in favour of allowing banks to use gold deposits as cash reserve ratio or statutory
liquidity ratio. RBI has asked banks and financial institutions to submit data on
wilful defaulters of 2.5 mln rupees and above for Oct-Dec 2014 to credit
information companies and not to the central bank. RBI has advised credit
information companies to adopt Credit Information Bureau's method of
calibrating credit scores from 300 to 900 within six months.

* DEFENCE: The Centre may increase the defence allocation in the Budget by at
least 20% to an estimated 2.24 trln rupees in 2014-15 (Apr-Mar).

* ECONOMY: Financial Services Secretary G.S. Sandhu said that the Union
Budget will aim at bringing the Indian economy back to a high growth trajectory.

* FINANCIAL SERVICES: RBI has asked Indian financial institutions to register
with US authorities and obtain a Global Intermediary Identification Number by
Dec 31.

* GOVERNANCE: The project monitoring group under the Cabinet Secretariat has
decided to digitise all applications for clearances relating to forest, environment
and others by March. The new government may increase the plan expenditure
for the current financial year by around 110 bln rupees in the Budget, which
would be around 2% higher than what was provided in the previous Budget.

* INDUSTRY: The Maharashtra government has decided to give highest priority
to use of water for drinking purposes alone and avoid diversion to
industries. Rural Development Minister Nitin Gadkari has said the government
will not compromise the interest of farmers on the resettlement, rehabilitation
and compensation clause in the Land Acquisition Act.

* INFORMATION TECHNOLOGY: Essar Group's Shashi and Ravi Ruia plan to raise
36 bln rupees through the sale of Aegis Business Process Outsourcing's US and
Philippines operations to Paris-based Teleperformance.

* JEWELLERY: Gem and jewellery industry in India has asked the government to
extend the interest subvention of 3% to the sector.

* LAW: The Narendra Modi government is considering the option of formally
approaching the judiciary to find a way to deal with tricky litigation and disputes
that are holding up investments.

* MEDIA: The Government is set to classify set-top boxes as 'telecom network
equipment', thus exempting them from various taxes and duties.

* MINING: Iron ore mining in Goa is unlikely to resume in 2014 as the state
government is busy tweaking the policy to meet requirements of the Supreme
Court order.

* OIL: The government is mulling tax cuts on petrol and diesel to cushion
consumers from rising prices.

* PHARMACEUTICALS: The Centre intends to revive India's active
pharmaceutical ingredient or bulk drug market by formulating a separate policy,
which will promote the industry internationally, apart from catering to local
needs.

* POWER: The government is likely to give power and transmission projects due
to be commissioned this year a Section 80-IA tax holiday in the coming Budget.

* REGULATORY: The government is considering empowering commodity market
regulator Forward Markets Commission with search and seizure powers, similar
to that of the Securities and Exchange Board of India.

* RETAIL: The BJP government is likely to put the proposal to open up e- commerce to foreign direct investment on the back burner.

* TAXATION: The Congress-Nationalist Congress Party government in
Maharashtra has proposed to introduce a new tax to abolish the controversial
local body tax in 26 municipal corporations, excluding Mumbai's. India and the
US have agreed to implement a foreign tax compliance law and asked banks and
financial institutions to register by this year end to report accounts and assets
held by US citizens.

SECTORS ALERT – 26.06.2014

SECTORS ALERT – 26.06.2014

* AGRICULTURE: The Cabinet Committee on Economic Affairs has approved all the
recommendations of the Commission For Agriculture Costs and Prices on minimum
support prices for the 2014-15 kharif crops. Uttar Pradesh Sugar Mills Association has
written to the state government requesting rationalisation of the cane price policy.

* AUTO: Hyundai Motor India Senior Vice-President Sales & Marketing Rakesh
Srivastava expects positive sales growth in June. The automobile industry has welcomed
the extension in reduction of excise duty on vehicles till Dec 31, but with a hint of
scepticism.Government is looking at new norms for electric vehicles.

* AVIATION: The civil aviation ministry is developing an entirely new framework for
bilateral air service agreements that will focus more on the needs of domestic carriers.

* DISINVESTMENT: The government may raise asset sale target by 41% as finance
minister Arun Jaitley looks to trim the widest budget deficit among emerging markets.

* FMCG: Union Health Minister Harsh Vardhan has written to the finance ministry
seeking a value added tax of 60% on cigarettes.

* HOSPITALITY: Tata Group's budget hotel chain Ginger is looking to add 30-35 small
family-run hotels to its network through franchise agreements or management contracts.

* OIL & GAS: The Cabinet Committee on Economic Affairs has deferred the decision on
gas pricing by three months.

* INFRASTRUCTURE: The Odisha Industrial Infrastructure Development Corporation
had granted approval to JINDAL STEEL AND POWER, EMAMI PAPER MILLS, and
three others to mortgage leased land for raising loans.

* PHARMACEUTICALS: The Indian Drug Manufacturers' Association has asked the
government that 'control samples' and samples given to physicians be exempted from
duties and taxes in the Budget.
The government is likely to offer a financing scheme to the domestic pharmaceutical
industry to upgrade their manufacturing facilities and meet stringent standards of the
world's leading export markets.

* POWER: The power ministry was understood to have set up an advisory group headed
by Suresh Prabhu, power minister in the previous National Democratic Alliance-led
government, for integrated development of the sector.
There is enough scope for power utilities to ensure uninterrupted supply without tariff
shock, but consumers too need to do their bit by being willing to pay for 24x7 service and
helping stop electricity theft, Union Power Minister Piyush Goyal said. The Brihanmumbai Electric Supply and Transport Undertaking has filed a fresh affidavit
in the Maharashtra Electricity Regulatory Commission opposing TATA POWER CO's
entry into electricity distribution in Mumbai.

* REAL ESTATE: Confederation of Real Estate Developers Associations of India plans
to discontinue construction works indefinitely and stop procuring cement for its activities
in south India in protest against the steep hike in cement prices.

* RETAIL: Branded garments might become more expensive, with the finance ministry
thinking of bringing back excise duty on this category in the Budget. Japanese clothing
chain Uniqlo is looking to source garments from India.

* SHIPPING: The shipping ministry has requested the petroleum ministry to increase the
share of Indian flagged ships in the country's oil trade.

* STATES: The Maharashtra government has announced a 5% reservation in government
jobs and educational institutions for Muslims and another 16% for Maratha community

DAILY SECTORS ALERT – 18.06.2014

SECTORS ALERT – 18.06.2014

* AUTOMOBILES: Suzuki Motorcycle India has planned to spend around 7% of its
sales in advertisement campaigns in this financial year. General Motors recalled three
mln more cars for an ignition switch defect that affects power steering, power brakes and
air bags.

* AVIATION: Air India will lease space to restaurants and food joints at its noted
Nariman Point building. Spicejet, Indigo drop fares across all routes pan
India.International carriers are gearing to tap the potential of the Indian
market with new products, services and increase in number of seats.
Air India has been offering lowest prices on busy routes and is selling cheap tickets even
close to travel date. IndiGO, Jet Airways, SpiceJet and GoAir have asked aviation regulator to
deny an airline permit to Tata SIA Airlines, joint venture between Tata Sons
and Singapore Airlines. * BANKING: Deputy Governor R. Gandhi Tuesday said that effective regulation of non-banking finance companies is a big challenge for the RBI.

* BROADCAST: With the change in government at the Centre, direct-to-home
operators are hopeful of getting some respite from the multi-layer taxes they
have to pay.

* CAPITAL GOODS: The French government raised the stakes in the battle for
engineering group Alstom telling rival suitors General Electric and Siemens
to come up with better offers.

* COMMODITIES: The government has no plan as of now to put any curbs on
futures trade in essential commodities, a senior finance ministry official said.

* CORPORATES: The Ministry of Corporate Affairs today deferred the electronic
voting provision in the Companies Act 2013 until Dec 31.* DEFENCE: Industry body ASSOCHAM has urged the government to hike the foreign direct investment limit in the sector to 100% from the current 26%.

* ECONOMY: The government decided to ask states to crack down on hoarding and
delist fruits and vegetables from the Agriculture Produce Marketing Committee
as part of measures to curb price rise.

* ENERGY: India is working towards bringing in policies to attract foreign
investment in the oil and gas sector. Russia is likely to use India as the next stop for
expansion of its hydrocarbon market. BP will sign a deal worth around $20 bln to supply
liquified natural gas to China National Offshore Oil Corp.Power project developers say they will not be able to pitch for two proposed ultra mega power projects with a capacity of 4,000 MW each if their concerns are not resolved. The government is reworking the incentive regime governing hydrocarbon exploration.

* EXCHANGES: The BSE will change circuit filters of 12 stocks including Response
Informatics, Vivid Global Industries, and Indo Asia Finance, among others, from
Wednesday.

* INFRASTRUCTURE: The government plans to form a group of officials from the
ministries of urban development, rural development and water resources to focus on
cleansing the Yamuna river.

* RAILWAYS: Railway Minister D.V. Sadanand Gowda has sought higher budgetary
support from Finance Minister Arun Jaitley for 2014-15 (Apr-Mar). The railway minister
may announce his decision on fare hikes even before the Railway Budget but only after
discussions with Narendra Modi.

* REALTY: Global financial services firm Xander Group Inc is buying Infinity
Technology Park, a 780,000 square feet commercial space owned by Tata Realty
and Infrastructure in Mumbai suburbs for about 6.5 bln rupees.

* REGULATORY: Securities and Exchange Board of India notified revised norms for
public issuances of debt securities wherein the minimum subscription has been set at 75%
of the base issue size for non-banking finance companies and for non-NBFC issuers.
SEBI is planning to provide fresh avenues for start-ups and small and medium enterprises
to raise early-stage funding through internet based platforms. SEBI said investments by foreign portfolio investors in non-convertible shares or debentures will be included within the $51-bln limit meant for corporate debt.

* SPECIAL ECONOMIC ZONE: The finance ministry is likely to suggest curtailing
minimum alternate tax on SEZ developers to 7.5% from the current 18.5%.

* SUGAR: Banks have given over 40 bln rupees interest-free loans to sugar
mills out of total 66 bln rupees approved by the government to cash-strapped
farmers.

* TELECOM: The government has appointed former Chief Justice of India R.C.
Lahoti as arbitrator in the 200-bln rupee tax dispute case with UK telecom
major Vodafone.The government will invest 50 bln rupees to set up over 8,000 mobile
towers in the North East.The rollout of national number portability could be delayed further as
the department of telecommunications sought fresh examination of modalities
on the scheme from Telecom Regulatory Authority of India.
The government is working on crucial rules on spectrum sharing, trading
and allocation policy and also looking to speedily resolve outstanding tax
disputes with overseas firms such as Vodafone and Nokia.
Uninor upstaged its much larger rivals by adding 1.3 mln customers in
May.The telecom department has said the merger of Tamil Nadu and Chennai
service areas in 2005 was well thought out, rejecting the Comptroller and
Auditor General of India's claim that it was a hasty decision that cost the
exchequer 24 bln rupees.

DAILY SECTORS ALERT – 17.06.2014

SECTORS ALERT – 17.06.2014

* AUTOMOBILES: Renault on Monday launched a special edition of its mid-sized sedan
Scala in India. Suzuki Motorcycle India has slashed the price of its premium bike
Inazuma by one lakh rupees. With validity of excise duty cuts on cars, two-wheelers and
commercial vehicles set to lapse soon, automobile manufacturers met commerce minister
Nirmala Sitharaman to convince her of the need to extend the benefit beyond Jun 20.

* AVIATION: AirAsia India has announced the addition of Kochi to its network,
with Bengaluru-Kochi flights starting Jul 20.

* BANKING: Reserve Bank of India has accepted the Nachiket Mor committee's
recommendations on introducing payments banks to small businesses after making some
significant changes to the proposed characteristics of these entities.

* ENERGY: India recorded the largest volumetric decline in natural gas production and
consumption in 2013.Coal and Power Minister Piyush Goyal has met senior officials of
both the ministries late last week to thrash out issues relating to coal pricing and fuel
quality. Losses on sale of diesel have dipped to a record low of 1.62 rupees a litre,
raising prospect of deregulation of the nation's most consumed fuel.
The power ministry has requested the coal ministry to ensure that Coal India signs fuel
supply pacts with 10 power units of companies such as Abhijeet, Lanco and DVC for
4,000 MW.

* HIGHWAYS: The road transport and highways ministry has sought 300-350 bln rupees
from the Finance Ministry as budgetary support to implement various projects.

* INFRASTRUCTURE: The Maharashtra government is contemplating on converting
the overground Mumbai Metro Line 2 metro into an underground one, even as it awaits
environmental clearance for the planned Charkop-Bandra-Mankhurd route.
Maharashtra government has decided to drop the idea of constructing the Western
Freeway, a series of bridges over the Arabian Sea, connecting the Mumbai with the
western suburbs and has instead decided to build a Coastal Freeway, a road along the
entire length of Mumbai's western coast.

* INVESTMENT: The Union government is likely to issue far less of tax-free bonds in this financial year.

* POWER: Power Minister Piyush Goyal has said that POWER GRID CORP OF INDIA
has been asked to take up permanent restoration of three damaged lines in Delhi, which
has been leading to prolonged power cuts in the national capital.
REGULATORS: Securities and Exchange Board of India may relax restrictions on sale
of bonus shares held by promoters or other investors during an initial public offer of a
company even if these shares have been held for less than a year.

* STEEL: Rashtriya Ispat Nigam said that two contract engineers died at its Vizag plant
while carrying out inspection in a container laboratory. Essar Steel has got an order to
supply 120,000 tn of pipes for Gujarat government's water management programme.
POSCO's long delayed $ 12 bln steel project may start within a year as opposition from
villagers is fading.

* SUGAR: The oil ministry could be looking to cap the quantum of ethanol blending in
petrol at 10%.

* TAX: A tax reform panel, appointed by the then Congress-led United Progressive
Alliance government, has suggested abolition of the post of revenue secretary and
convergence of the two boards of direct and indirect taxes in the next five years.

* TELECOM: The department of economic affairs will shortly come up with 'a general
formula' to incentivise telecom tower firms, leveraging their infrastructure status. GSM
industry lobby Cellular Operators Association of India has asked the telecom ministry to
relax merger and acquisition norms to encourage consolidation in the sector and rival
CDMA lobby group Auspi has sought retrospective implementation of a scheme that
could reduce fines for radiation norm violations. China-based ZTE Corp plans to have its
first batch of 5G gear prototypes by next year to ensure that it figures among the first
vendors to launch 5G devices commercially in the international markets including India.

* WEATHER: The average rainfall in the country during Jun 1-16 was 49% below
normal at 34.1 mm.

DAILY SECTORS ALERT – 13.06.2014

SECTORS ALERT – 13.06.2014

* ECONOMY: The budget session of parliament will start in the second week
of July and the Union Budget would be presented in the first week itself.

* ENERGY: Power and Coal Minister Piyush Goyal discussed issues regarding
major pending energy projects including NTPC's Barh-II unit, coal allocation
for Banka ultra mega power project with political delegations from Bihar,
Gujarat and Punjab.

* FERTILISERS: India imported 1.49 mln tn urea during the first two months
of the current financial year.

* INFORMATION TECHNOLOGY: Big Indian outsourcing companies are
looking to gain a share of IT deals worth over $55 bln that are being renewed
by top customers such as Citibank this year.

* INFRASTRUCTURE: The Department of Industrial Policy and Promotion
has urged the finance ministry to raise the outlay for Delhi-Mumbai Industrial
Corridor project to 74.78 bln rupees in the forthcoming regular Budget.

* INSURANCE: Life Insurance Corp of India has set aside 7-10 bln rupees for
picking up small stakes in 10-12 public sector banks in 2014-15 (Apr-Mar).

* MINING: The mines ministry has floated a draft cabinet note on increasin
royalty on minerals like iron ore and bauxite for interministerial discussions.

* REGULATORY: The RBI has said banks will be allowed to transfer foreign
assets of liaison office, branch office, or project office to Indian joint venture
companies or wholly-owned subsidiaries, subject to some conditions.
SEBI, at its meeting on Jun 19, may approve a proposal to reserve up to 10% of
the issue size of offer-for-sale of shares for retail investors, according to
sources

DAILY SECTORS ALERT – 11.06.2014

SECTORS ALERT – 11.06.2014

* AGRICULTURE: India Meteorological Department said Jun 1-10 rainfall
was 20.6 mm, 43% below normal, and Jun 10 rainfall was 2.9 mm, 32% below
normal.

* BANKING: Loss-making CKP Co-operative Bank, which is currently run
under an administrator appointed by the Reserve Bank of India, is attracting
interest from two prospective investors.

* ECONOMY: Terming sub-5% growth rate in the last two years as
"disappointing", Finance Minister Arun Jaitley said reviving the economy was
a major challenge for the new government. Finance Minister Jaitley said
restoring economic growth; curbing inflation and attaining fiscal consolidation
will be the priorities of government.

* ENERGY: The government may tweak the formula suggested by the
Rangarajan committee, to end controversies around the impending increase in
price of domestic natural gas.

* FINANCE: IL&FS has begun talks with International Finance Corp to sell a
minority stake in the company, and seek loans for a $5-bln infrastructure debt
fund that it plans to raise.

* GOVERNMENT: Has decided to reconstitute three Cabinet committees on
economic affairs, parliamentary affairs and political affairs and to discontinue
four cabinet panels.

* MINING: The Confederation of Indian Industry has requested the
government to allow transfer of mining licences by creating a market for them,
and also sought seamless clearances from one mining stage to another.
Supreme Court-appointed panel investigating Odisha iron ore and manganese
mining illegalities has disagreed with the state's decision to claim a market
rate of all ore mined in excess of permits.

* ROADS: The ministry of road transport and highways wants the share of
public private partnership projects, awarded by National Highways Authority
of India, to be brought down to 30% from 48%.

* REGULATORY: The Securities & Exchange Board of India has urged the
finance ministry not to tax investors when they buy stocks.

* RETAIL: French retailer Carrefour SA is planning to invest 1.45 bln rupees
in its arm India Carrefour.

* TAX: Maharashtra Chief Minister Prithviraj Chavan has asked mayors to
take feedback from traders on the two options proposed by the state--either the
local body tax be collected by the sales tax department or revert to the octroi
regime.

DAILY SECTORS ALERT – 06.06.2014

DAILY SECTORS ALERT – 06.06.2014

* AGRICULTURE: Food Minister Ram Vilas Paswan met his Cabinet colleagues to
discuss various aspects of the sugar policy.

* AVIATION: AirAsia India has stopped collecting a fee for up to 15 kg check-in
baggage, following a reproach from the Directorate General of Civil Aviation.

* INFRASTRUCTURE: The road ministry has prepared a list of 11 projects worth more
than 180 bln rupees that can be awarded within the next six months.

* INSURANCE: Reserve Bank of India said foreign portfolio investors and non- resident
Indians may invest up to 26% under the automatic route in the sector as per the reviewed
foreign direct investment policy. Government likely to raise the foreign direct
investment limit in insurance to 49% with two riders. All companies will have to provide
health insurance, and voting rights of foreigners will be limited to 26%.

* ENERGY: Clarity on key issues in the oil and gas sectors, including revision of gas
prices and pricing of subsidised fuels, is expected next week. Petroleum ministry will
recommend a hike in prices paid to local suppliers such as ONGC, RELIANCE
INDUSTRIES and CAIRN INDIA.

* MINING: Large portions of forests could be opened up for mining as the environment
ministry is reworking the yardstick for identifying forest areas where mining is forbidden.
* PRIVATE EQUITY: Private equity firm Everstone Capital is in talks to buy 30% stake
in lifestyle mall operator Fun Republic.

* REGULATORY: Securities and Exchange Board of India has barred Factorial Master
Fund, a Cayman Islands-based hedge fund, from the Indian securities markets.

DAILY SECTORS ALERT – 05.06.2014

SECTORS ALERT – 05.06.2014

* AVITAION: Air India posted revenue of 440 mln rupees in May, according to sources,
up 16% from a year earlier.

* AUTOMOBILES: Nissan India sold a total of 5,021 vehicles in May, up from 2,080
vehicles during the same period last year.

* BANKING: The Reserve Bank of India may soon change the guidelines for dealing
with Special Mention Accounts, making it mandatory for banks to set up joint lenders'
forums as soon as a borrower delays payments beyond 30 days.

* ENERGY: Global private equity firm KKR is likely to acquire a majority stake in
Avantha Power and Infrastructure. The government may not decontrol diesel prices
completely, and may retain control even after under recovery becomes zero.

* FINANCE: The Reserve Bank of India will conduct a 28-day special term repo variable
rate auction for a notified amount of 200 bln rupees on Friday. India's top companies led
by INDIAN OIL, Vedanta, TATA POWER and POWER FINANCE CORP plan to raise
funds abroad this month to take advantage of renewed investor interest in India.

* GOVERNMENT: Commerce and Industry Minister Nirmala Sitharaman met C.
Rangarajan, former chairman of the Prime Minister's Economic Advisory Council, to
seek advice on steps to boost the Indian economy.

* POLITICS: Prime Minister Narendra Modi has told secretary-level government officers
to take decisions to build a better future for the country, and assured that he would stand
by them.

* REGULATORY: SEBI has attached the Chennai property of Pyramid Saimira Theatre
Ltd's promoter P.S. Saminathan after the latter failed to pay fine for failing to make an
open offer for shares of the company.

* STATES: Total electricity generation in Maharashtra was 66,396 mln units as of
December 2013, down 2% on year.

* TAXATION: Finance Minister Arun Jaitley might look at non-tax revenue and
withdraw some tax exemptions to fund capital expenditure in his first Budget.* TELECOM: The Department of Telecommunications has rejected Vodafone's request
to renew its licences in seven regions where they are expiring in December

DAILY SECTORS ALERT – 04.06.2014

SECTORS ALERT – 04.06.2014
* AVIATION: AirAsia India's plan to unbundle services has run into trouble with the
Directorate General of Civil Aviation as the aviation regulator has asked the airline to
withdraw all fees and charges.
* BANKING: The finance ministry is mulling creation of a national asset management
company to take over big non-performing assets of banks. The finance ministry discussed
various options to capitalise state-owned banks, including reducing government's stake in
some banks below 58%.
* BULLION: The finance ministry is likely to reduce the gold import duty by 2-4% from
15% currently.
* COAL: The inter-ministerial group on coal headed by the additional secretary in the
coal ministry will meet on Jun 10 to review the issue of bank guarantee of 61 coal blocks.
* COURTS: The Supreme Court will today pass its order on whether to allow Sahara
group to sell properties, including three hotels in London and New York, and on group
head Subrata Roy's plea for release from jail.
* DEFENCE: The government might allow foreign direct investment up to 49% in the
defence sector without any mandatory transfer of technology.
* ENERGY: The finance ministry has vetoed the oil ministry's plan to provide special
benefits like a 10-year tax holiday and zero cess and royalty for ultra deep water
exploration.
* FINANCE: L&T Infrastructure Debt Fund is in advanced talks with an Indian public
sector bank, a US bank, and multilateral agencies to offload 49% in the fund.
* FMCG: Pernod Ricard plans to borrow 9 bln rupees in a bid to intensify its competition
with Diageo in India.
* GOVERNMENT: Prime Minister Narendra Modi's meeting with secretaries of all the
departments scheduled Tuesday has been postponed. Ahead of the full Budget, ministers
for Railways and Civil Aviation, D.V. Sadananda Gowda and Ashok Gajapathi Raju met
Finance Minister Arun Jaitley at the latter's North Block office.
* HOSPITALITY: Lemon Tree Hotel Co plans to invest around 45 bln rupees to add5,200 rooms across India in the next four years. Average occupancy rates in key
hospitality markets of Delhi, Mumbai, Bengaluru, Chennai and Kolkata are likely to fall
5-7% in 2014, as per a report by Cushman and Wakefield.
* REGULATORY: The finance ministry is said to be considering a unified law for all
financial-sector regulators, including the Reserve Bank of India. The Securities and
Exchange Board of India has modified the framework that provides guidelines to short
sellers for borrowing securities for making delivery.
* STATES: Tamil Nadu Chief Minister J. Jayalalithaa has said her party, the All India
Anna Dravida Munnetra Kazhagam, will consider offering issue-based support to the
National Democratic Alliance government in Rajya Sabha.
* WEATHER: The Australian Bureau of Meteorology sees a 70% chance of El Nino
developing this year in the tropical Pacific Ocean and expects the weather phenomenon
to be established by August.

DAILY SECTORS ALERT – 03.06.2014

SECTORS ALERT – 03.06.2014
* AGRICULTURE: Food Minister Ram Vilas Paswan said he would meet his Cabinet
colleagues on Jun 4-5 to review India's sugar policy.
* AUTOMOBILES: Honda Motorcycle & Scooter India sold a total of 355,726 vehicles
in May, up 55% year on year.
* ECONOMY: The Special Investigation Team set up to unearth black money held its
first meeting on Monday and has decided on a roadmap ahead.
* GOVERNMENT: Odisha Chief Minister Navneen Patnaik called on Prime Minister
Narendra Modi on Monday and sought special category status for the state.
* INDIAN RAILWAYS: Plans to be a full logistic solutions provider by setting up
Logistics Corporation of India.
* MEDIA: Minister for Information and Broadcasting Prakash Javadekar said the
government will consider indigenisation of set-top boxes before taking up phases three
and four of cable television digitisation.
* PHARMA: Temasek bought 12.5% stake in Intas Pharmaceuticals, one of India's top
10 drug makers by sales, for about 11 bln rupees.
* REGULATORY: Premji Invest, the family-owned investment fund of Wipro promoter
Azim Premji, has received the Reserve Bank of India's approval to invest abroad.
* STEEL: SAIL and TATA STEEL are set to restart operations at their captive iron ore
mines in Odisha after receiving clearance from the state government.
* TEXTILES: India has overtaken Germany and Italy to emerge as the world's second
largest textile exporter. But it lags behind China, whose exports are nearly seven times
higher.
* TELECOM: Vodafone's tax dispute with the government may be heading for a
resolution, with the finance ministry considering changing the Income-Tax Act's
retrospective amendment.

DAILY SECTORS ALERT – 02.06.2014

SECTORS ALERT – 02.06.2014
* AVIATION: AirAsia India slashed its ticket fares to 5 rupees per ticket only a day after
it announced opening of ticket bookings. Air India has entered into a code share
agreement with Hong Kong Airlines. Air India is may seek permission from the new
government to raise 100 bln rupees through an issue of tax-free bonds in the current
financial.
* AUTOMOTIVE: Volkswagen is studying the possibility of introducing a budget brand
for the Indian market. Toyota Kirloskar May sales 13,230 units, up 6% on year. Domestic
sales were 11,833 units, up 18% on year.
* BANKING: An accumulation of foreign currency non-resident (bank) deposits and
foreign currency borrowings pushed up international liabilities of Indian banks by 35.8%
on-year as of December, RBI data showed. Maharashtra state co-operative commissioner
has launched a probe against the erstwhile directors and officials of the Maharashtra State
Co-operative Bank to probe their role in the losses caused to the bank. Reserve Bank of
India Deputy Governor R. Gandhi said high level of stressed assets in the banking system
were a cause for concern for the central bank.
* BOND MARKETS: India Infradebt and L&T Infrastructure Finance Co raised 5.5 bln
rupees between them from the bond market.
* DEFENCE: Home ministry is believed to have raised strong objections on the draft
Cabinet note, floated by the department of industrial policy and promotion, for allowing
100% FDI in the defence sector.
* ENERGY: ILFS Energy Development Co has begun talks with Shanghai Electric
Group to sell up to 74% stake in eight projects. Power cuts could spread to many parts of
the country as the electricity deficit more than doubled in May, while spot power prices
have doubled in the last few days.
* INFRASTRUCTURE: India signed three loan agreement worth $310.20 mln with the
World Bank for water supply, sanitation, and watershed development
projects. Government is looking to push loan flow to projects worth 5 bln rupees and
above in a bid to revive investment and accelerate economic growth.
* INSURANCE: The Finance Ministry could recommend an increase in the limit on
foreign direct investment in the insurance sector to 49% from 26%, albeit with a few
restrictions to push the crucial reform.* IT: Enterprise software maker Covacsis Technologies has received funding from the
venture capital arms of RELIANCE INDUSTRIES and Cisco.
* REGULATORY: Officials from the department of economic affairs are expected to
make a case for merger of the Securities and Exchange Board of India and the Forward
Markets Commission to the Finance Ministry.
* TAXATION: Japan has asked the government to drop a $3 bln retrospective tax bill
raised on Japanese companies including Honda and Mistubishi operating in India.
* TELECOM: After a meeting with senior executives of Vodafone, finance ministry
officials "have got an impression" that the company wants to resolve the long- pending
tax issue with the Indian government, a senior official said. Operators are offering salary
hikes and retention packages that are far more generous than in recent years, as they try
to ring-fence core teams from Reliance Jio Infocomm.
* TRANSPORTATION: The Narendra Modi government has drawn up a 250-bln-rupee
plan to create a national waterway grid linking Ganga, Brahmaputra, Mahanadi and
Godavari rivers.
* TRADE: The fertiliser ministry plans to import 7.2 mln tn urea during 2014-15 (Apr- Mar).
IPO NEWS
* The BSE plans to sell a part of its stake in Central Depository Services (India) through
an initial public offer

DAILY SECTORS ALERT – 28.05.2014

SECTORS ALERT – 28.05.2014
* BANKING: The Reserve Bank of India has advised non-banking financial companies that all
transactions, including payment of interest on deposits and charging of interest on advances, should be
rounded off to the nearest rupee. RBI released operational guidelines for The Depositor Education and
Awareness Fund Scheme, and asked banks to calculate balances in all accounts falling under the scheme,
along with interest accrued as on May 23, and transfer the amount to the fund on Jun 30. RBI Governor
Raghuram Rajan is expected to stay on as governor with the new government willing to work with him.
RBI has cancelled the certificate of registration of three Kolkata-based non banking financial companies.

* ECONOMY: Law Minister Ravi Shankar Prasad said that Justice Shah will head a team unearthing black
money. Finance Minister Arun Jaitley has asked his officials to identify three-four key issues on which
action can be initiated over the next few months. Akali Dal will step up its demand for a special package
for Punjab to overcome financial stress.

* FMCG: Cadbury has recalled two products--Cadbury Dairy Milk hazelnut and Cadbury Dairy Milk roast
almond--in mainly Muslim Malaysia after traces of pig DNA were found during a routine check for non- halal substances.

* GOLD: Government is expected to ease restrictions on gold imports and a decision is expected soon.

* HOSPITALITY: Restaurant chain Olive Bar & Kitchen is looking to raise 1.8-2.0 bln rupees from private
equity investors to fund expansion plans.

* IMPORTS: The RBI said importers can book forward contracts up to 50% of the eligible limit under the
past performance route.

* INSURANCE: HDFC Life has got permission to set up a subsidiary in West Asia from the Insurance
Regulatory and Development Authority.

* MONSOON: The southwest monsoon is likely to move to Kerala coast by Jun 28-30, a few days ahead of India Meteorological Department's forecast, private weather forecaster Skymet Chief Executive Officer
Jatin Singh said.

* POLITICS: A magisterial court today ordered "forthwith" release of Aam Aadmi Party Convenor Arvind
Kejriwal after he, on the Delhi High Court's advice, furnished a personal bail bond to the lower court.

* POWER: Karnataka's Energy Minister D.K. Shivakumar said Karnataka Power Transmission Corp plans
to take up 244 new works for around 51 bln rupees this year to improve the power situation in the state.

* PUBLIC SECTOR: Securities and Exchange Board of India wants the government to pare its holdings in
public sector undertakings to below 75%. Finance ministry officials have proposed divestment through
follow-on offers and open offer for sale to increase market float of state-run companies.

* RETAIL: Minister of State for Commerce Nirmala Sitharaman said the government is not in favour of
foreign direct investment in multi-brand retail at present.

* REAL ESTATE: Adani Group's real estate arm Adani Realty announced launch of luxury residential
project in Mumbai's Four Bungalows area.

* ROADS: Road transport and highways department has set the target of awarding 8,500 km of highways
and complete construction of 3,900 km in this financial year.

* STOCK EXCHANGES: Madras Stock Exchange will lose its licence to trade in stocks and shares post
May 30. The BSE has said the government should allow leading global bourses to hold up to 49% stake in
Indian bourses to enhance competitiveness of domestic capital markets. * TELECOM: Vodafone India's Chief Executive Officer Marten Pieters said he expects the new
government to reduce financial burden on the sector.

DAILY SECTORS ALERT – 23.05.2014

SECTORS ALERT – 23.05.2014

* AVIATION: Air-India has been put on cash-and-carry mode by Mumbai Airport
authorities after its dues mounted to 4.5 bln rupees. IndiGo has added an enabling
provision to its memorandum of association that allows it to form joint ventures, merge or
sell stake to other companies.

* AUTOMOTIVE: Volkswagen plans to introduce a compact sedan, and may even look
at launching a compact sport utility vehicle, to tap the demand in these segments. * BANKING: Catholic Syrian Bank and RBL, formerly known as Ratnakar Bank, are set
to go for an initial public offering this year.

* COMMODITIES: European Union's Food and Veterinary Office will visit India in
September to judge if ban on Indian mangoes and some vegetables can be lifted.

* GOVERNMENT: The government will issue a request for proposal to appoint a valuer
for the government's residual stake in HINDUSTAN ZINC and Bharat Aluminium Co
only after the new finance minister takes charge and clears the proposal. The government
is likely to re-visit the policy framework for both foreign and domestic investments to
make those more conducive, and will also undertake banking reforms to enhance access
and accountability. The department of disinvestment has suggested "strategic sale of non- strategic" public sector companies. Has asked oil companies to provide 670-bln-rupee
subsidy for 2013-14 (Apr-Mar) to help cover losses of state retailers.

* FINANCIAL SERVICES: TransUnion now has a majority stake in Credit Information
Bureau India, after increasing its holding to 55% from 47% earlier.

* INFRASTRUCTURE: National Highways Authority of India is likely to reject requests
from 4-5 firms including SADBHAV ENGINEERING, and RELIANCE
INFRASTRUCTURE for rescheduling the premia due to the government for constructing
highways. The civil aviation ministry is set to propose to the new government to do away
with the policy of not having an airport within 150 km of an existing airport.

* REGULATORY: The cash transaction limit per investor for investments in mutual
funds has been raised to 50,000 rupees from 20,000 rupees per year, Securities and
Exchange Board of India said. SEBI has increased the cash investment limit in mutual
funds for investors without permanent account number to 50,000 rupees from 20,000
rupees. The Central Bureau of Investigation examined SEBI Chairman U.K. Sinha in
connection with granting permission to FINANCIAL TECHNOLOGIES for setting up
MCX Stock Exchange.

* SUGAR: The Indian Sugar Mills Association has raised the country's 2013-14 (Oct- Sep) sugar output estimate to 24.2 mln tn from 23.8 mln tn earlier.

* WEATHER: Pre-monsoon rains in the country have been weaker than normal,
according to data released by the India Meteorological Department.

DAILY SECTORS ALERT – 22.05.2014

SECTORS ALERT – 22.05.2014

* AVIATION: Singapore Airlines has said it will not charge premium fares from
passengers flying on the Airbus A380, which it will press into service on
flights to Mumbai and Delhi on May 30. * AUTOMOTIVE: Japan's Honda Motor Co cut its forecast for India's two-wheeler
market, saying it would probably expand to 20-25 mln units by 2020, lower than its
earlier projection of 30 mln.

* BULLION: Reserve Bank of India has eased norms for grant of gold to jewellers and
has allowed some star trading houses to import the metal the under 20:80 scheme.

* E-COMMERCE: Snapdeal has completed a new round of equity financing of $100 mln
from Temasek, BlackRock, Myriad, Premji Invest and Tybourne.

* ECONOMY: While keeping its forecast for India's 2014-15 (Apr-Mar) economic
growth unchanged at 5.6%, Citi Research said the change in government could help boost
growth, but a poor monsoon could offset this.

* GOVERNMENT: Finance Secretary Arvind Mayaram met officials of some state- owned companies to review their capital expenditure plans and prepare ground for the
new finance minister who will possibly take charge next week. Cabinet Secretary Ajit
Seth met senior officials of various departments, including the agriculture ministry and
the Department of Economic Affairs, to assess the price situation prevalent in the
country. Finance Secretary Arvind Mayaram is likely to hold a meeting to review the
long-pending Goods and Services Tax bill and the Direct Taxes Code bill, a ministry
official said.

* INFLATION: India's Consumer Price Index inflation is likely to ease slightly in May to
8.3%-8.5%, consultancy Dun & Bradstreet said.

* INFRASTRUCTURE: The ministry of road, transport and highways has said it would
award 7,000 km of road projects in the current financial year.

* PHARMACEUTICALS: The Indian drug pricing regulator is planning to lower prices
of expensive medicines used for treating cancer, HIV, diabetes, cardiovascular diseases,
malaria and tuberculosis. India will spend 30 bln rupees over the next three years to
double the number of drug inspectors in order to meet global manufacturing standards.

* REGULATORY: Activity in the primary corporate bond market is beginning to pick up
after the Ministry of Corporate Affairs clarified that non-banking finance companies are
exempt from the mandatory debenture redemption ratio norm. The RBI has deferred the
implementation of the Aadhar-linked payment plan, and has asked banks to examine
technical difficulties of the proposed system and the timeframe to implement it.

* RETAIL: UK retailer Tesco PLC and Tata Group company Trent will go ahead with
expansion plans in Maharashtra and Karnataka, despite policy uncertainty.

* TELECOM: The Department of Telecommunications is looking at a complete overhaul
of the regulatory framework that governs the Indian telecom sector.
Loop Mobile Managing Director and Chief Executive Officer Sandip Basu is said to have
quit following BHARTI AIRTEL's deal to take over the company.

DAILY SECTORS ALERT – 21.05.2014

SECTORS ALERT – 21.05.2014
* AVIATION: GoAir plans to seek permission from the civil aviation ministry for
international traffic rights. IndiGo has retained the top spot in domestic aviation space
with a market share of 31.6%. JET AIRWAYS (INDIA) was a distant second with
21.8%, according to data from the Directorate of Civil Aviation for April. AirAsia Group
Chief Executive Officer Tony Fernandes has accused rival IndiGo of hindering the
launch of his airline's services in India.
* BANKING: RBI, which issued banking licences to two new entities last month, will
announce a more regular process of granting bank licences.The successful introduction of
payments banks in the country can reduce the quantity of government securities held by
commercial banks as part of statutory liquidity ratio, Reserve Bank of India governor
said.
* ECONOMY: India's inflation rate based on the Consumer Price Index for Agricultural
Labourers inched up to a three-month high of 8.44% in April from 8.38% in March,
according to the Labour Bureau.
* EXCHANGES: Foreign portfolio investors, who cover their currency risk in overseas
markets, will now be able to hedge their risk of a falling dollar in currency derivatives
segment of Indian stock exchanges.
* GOVERNMENT: The Foreign Investment Promotion Board approved 10 foreign direct
investment proposals worth 1.40 bln rupees at its meeting held on Mar 28.
* OIL & GAS: Gujarat State Petroleum is planning an initial public offering as it is ready
to start gas production at its KG Basin block.
* POWER: The Delhi Electricity Regulatory Commission has refused a tariff hike for
BSES distribution companies.
* RETAIL: UK fashion retailer Marks & Spencer plans to expand to 100 outlets in two
years.
* TELECOM: Vodafone Group Plc's India operations have made profit in the financial
year 2013-14 (Apr-Mar)--the first time since 2007 when the global
telecommunications conglomerate acquired Hutchison Essar Ltd in India.
* TEXTILES: The finance ministry has written to the textile ministry expressing concern
over the rise in prices of cotton textiles, especially cotton yarn, despite higher domestic
production. Vodafone Group Chief Executive Officer Vittorio Colao has indicated that
his company is willing to hold discussions with the new government for an out-of-court
settlement in the long-pending tax issue. Vodafone India has posted its first-ever profit of
133.99 bln rupees for the year ended Mar 31.